More than half of UK letting agents have no plans to adopt artificial intelligence (AI) in their operations with widespread concerns that the technology could erode personal relationships with tenants.
A nationwide survey commissioned by property technology platform Inventory Base found that 53% of letting agencies are not using AI and have no intention of doing so – despite a growing number of PropTech solutions entering the market.
While a small proportion of agencies are embracing the technology (12% reported using AI extensively and a further 15% to some extent) uptake remains limited. An additional 21% said they are considering AI adoption but have yet to implement it.
Where AI is being used, its application is mostly confined to marketing and lead generation (44%), tenant screening (17%), automated messaging tools (17%), maintenance handling (11%) and compliance checks (11%).
LOSING THE HUMAN TOUCH
However, the survey revealed that agents’ top concern is the perceived “loss of human touch” in tenant relationships, cited by 72% of respondents. This overshadowed worries about data privacy (11%), system accuracy (11%), and job displacement (6%).
Siân Hemming-Metcalfe, Operations Director at Inventory Base, says: “These findings make clear that the sector’s reluctance to adopt AI isn’t just about fear of change.
“It’s about preserving trust, professionalism and the critical human relationships at the heart of lettings.”
The report also highlights a major gap in industry education. Some 76% of letting agents said they had received no formal training or guidance on how to use AI responsibly and in line with lettings legislation. Only 6% had received comprehensive training, with another 6% receiving limited guidance.
COMPLIANCE CONFIDENCE
This lack of structured support appears to be undermining confidence in legal compliance. Over a quarter (27%) of agents admitted they were unsure whether their existing digital tools met regulatory standards.
The uncertainty extends beyond letting agents to inventory providers – whose reports play a crucial role in deposit disputes and legal proceedings. These professionals, Inventory Base notes, require AI tools that enhance rather than replace their on-site neutrality and observational rigour.
When asked about the impact of AI on tenant relations, only 18% of agents believed the technology improved the dynamic. By contrast, 36% felt it undermined the landlord-tenant relationship – with 18% saying “slightly” and another 18% “significantly”. Nearly half (47%) said it had no impact either way.
ENHANCING ACCURACY
Hemming-Metcalfe adds: “AI should complement, not disrupt, the day-to-day realities of the lettings sector. We must design systems that enhance accuracy and efficiency while protecting the integrity of landlord, agent and tenant relationships.”
Inventory Base says it is actively investing in the responsible deployment of AI across the lettings sector, with a focus on training, compliance and the development of tools tailored to the specific demands of property professionals.
